The earliest transcribed event in Bhutan was the passage of the Buddhist saint Padma Sambhava (also known as Guru Rinpoche) in 747. Bhutan’s early history is unclear, because most of the records were destroyed after fire ravaged the ancient capital, Punakha, in 1827. By the 10th century, Bhutan’s political development was heavily influenced by its religious history. Various sub-sects of Buddhism emerged which were patronized by the various Mongol warlords. After the decline of the Mongols in the 14th century, these sub-sects vied with each other for supremacy in the political and religious landscape, eventually leading to the ascendancy of the Drukpa sub-sect by the 16th century.

Until the early 17th century, Bhutan existed as a patchwork of minor warring fiefdoms, when the area was unified by the Tibetan lama and military leader Shabdrung Ngawang Namgyal who fled religious persecution in Tibet. To defend the country against intermittent Tibetan forays, Namgyal built a network of impregnable dzong (fortresses), and promulgated a code of law that helped to bring local lords under centralized control. Many such dzong still exist and are active centers of religion and district administration. Shabdrung Ngawang Namgyal also brought Nepalese people from Gorkha when Ram Shah was King of Gorkha. He brought 42 Nepalese families under the leadership of Bishnu Thapa Magar in 1616. Circa 1627, Portuguese Jesuit Estêvão Cacella and another priest were the first recorded Europeans to visit Bhutan on their way to Tibet. They met with Ngawang Namgyal, presented him with firearms, gunpowder and a telescope, and offered him their services in the war against Tibet, but the Shabdrung declined the offer. After a stay of nearly eight months Cacella wrote a long letter from the Chagri Monastery reporting on his travels. This is a rare extant report of the Shabdrung.

After Namgyal’s death in 1651, Bhutan fell into civil war. Taking advantage of the chaos, the Tibetans attacked Bhutan in 1710, and again in 1730 with the help of the Mongols. Both assaults were successfully thwarted, and an armistice was signed in 1759.

In the 18th century, the Bhutanese invaded and occupied the kingdom of Cooch Behar to the south. In 1772, Cooch Behar appealed to the British East India Company which assisted them in ousting the Bhutanese, and later in attacking Bhutan itself in 1774. A peace treaty was signed in which Bhutan agreed to retreat to its pre-1730 borders. However, the peace was tenuous, and border skirmishes with the British were to continue for the next 100 years. The skirmishes eventually led to the Duar War (1864–1865), a confrontation for control of the Bengal Duars. After Bhutan lost the war, the Treaty of Sinchula was signed between British India and Bhutan. As part of the war reparations, the Duars were ceded to the United Kingdom in exchange for a rent of Rs. 50,000. The treaty ended all hostilities between British India and Bhutan.

During the 1870s, power struggles between the rival valleys of Paro and Tongsa led to civil war in Bhutan, eventually leading to the ascendancy of Ugyen Wangchuck, the ponlop (governor) of Tongsa. From his power base in central Bhutan, Ugyen Wangchuck defeated his political enemies and united the country following several civil wars and rebellions in the period 1882–1885.

In 1907, an epochal year for the country, Ugyen Wangchuck was unanimously chosen as the hereditary king of the country by an assembly of leading Buddhist monks, government officials, and heads of important families. The British government promptly recognized the new monarchy, and in 1910 Bhutan signed a treaty which "let" Great Britain "guide" Bhutan’s foreign affairs. In reality, this did not mean much given Bhutan’s historical reticence. It also did not seem to apply to Bhutan’s traditional relations with Tibet. The greatest impact of this treaty seems to be the perception that it meant Bhutan was not totally sovereign.

After India gained independence from the United Kingdom on 15 August 1947, Bhutan became one of the first countries to recognize India’s independence. A treaty similar to that of 1910 in which Britain gained power with respect to Bhutan’s foreign relations was signed 8 August 1949 with the newly independent India.

In 1953, King Jigme Dorji Wangchuck established the country’s legislature – a 130-member National Assembly – to promote a more democratic form of governance. In 1965, he set up a Royal Advisory Council, and in 1968 he formed a Cabinet. In 1971, Bhutan was admitted to the United Nations, having held observer status for three years. In July 1972, Jigme Singye Wangchuck ascended to the throne at the age of 16 after the death of his father, Dorji Wangchuck.

In late 2003, the Bhutanese army successfully launched a large-scale operation to flush out anti-India insurgents who were operating training camps in southern Bhutan.

Bhutan used to be one of the most isolated countries in the world. Developments including direct international flights, the Internet, mobile phone networks, and cable television have increasingly modernized the urban areas of the country. Bhutan balanced modernization with its ancient culture and traditions under the guiding philosophy of Gross National Happiness (GNH). Rampant destruction of the environment has been avoided. The government takes great measures to preserve the nation’s traditional culture, identity and the environment. In 2006, Business Week magazine rated Bhutan the happiest country in Asia and the eighth-happiest in the world, citing a global survey conducted by the University of Leicester in 2006 called the "World Map of Happiness".

Bhutan’s landscape ranges from subtropical plains in the south to the Himalayan heights in the north, with some peaks exceeding 7,000 metres (23,000 ft). The state religion is Vajrayana Buddhism, and the population of 691,141 is predominantly Buddhist, with Hinduism being the second-largest religion. The capital and largest city is Thimphu. After centuries of direct monarchic rule, Bhutan held its first democratic elections in March 2008. Among other international associations, Bhutan is a member of the United Nations and the South Asian Association for Regional Cooperation (SAARC). The total area of the country is currently 38,394 square kilometres (14,824 sq mi).

Other Information

• Anthem : Druk Tsendhen
• Capital : Thimphu
• Coordinates :  27°25′01″N 90°26′06″E
• Official language : Dzongkha
• Demonym : Bhutanese
• Government : Constitutional democratic monarchy
  - King : Jigme Khesar Namgyel Wangchuck
  - Prime Minister : Jigme Y. Thinley
• Formation : Early 17th century
  - Wangchuk Dynasty : 17 December 1907
  - Constitutional Monarchy : 2007
• Area
  - Total : 38,394 km2, 14,824 sq mi
  - Water (%) : <1 (estimate)
• Population
  - July 2009 estimate : 691,141 (163rd)
  - 2005 census : 634,982
  - Density : 18.1/km2 (154th), 47/sq mi
• GDP (PPP) 2008 estimate
  - Total : $3.490 billion
  - Per capita : $5,312
• GDP (nominal) 2008 estimate
  - Total : $1.389 billion
  - Per capita : $2,114
• HDI (2007) : ▲ 0.619 (medium) (132nd)
• Currency : Ngultrum2 (BTN)
• Time zone : BTT (UTC+6:00)
  - Summer (DST) : not observed (UTC+6:00)
• Drives on the : left
• Internet TLD : .bt
• Calling code : 975

Historically Bhutan was known by many names, such as Lho Mon (southern land of darkness), Lho Tsendenjong (southern land of the Tsenden cypress), Lhomen Khazhi (southern land of four approaches) and Lho Men Jong (southern land of medicinal herbs).

In 1999, the government lifted a ban on television and the Internet, making Bhutan one of the last countries to introduce television. In his speech, the King said that television was a critical step to the modernisation of Bhutan as well as a major contributor to the country’s Gross National Happiness (Bhutan is the only country to measure happiness), but warned that the "misuse" of television could erode traditional Bhutanese values.

A new constitution was presented in early 2005. In December 2005, Jigme Singye Wangchuck announced that he would abdicate the throne in his son’s favor in 2008. On 14 December 2006, he announced that he would be abdicating immediately. Bhutan has now entered a new era of democracy, starting with its first national parliamentary elections in December 2007 and March 2008.

On November 6, 2008, 28-year old Jigme Khesar Namgyel Wangchuck, eldest son of King Jigme Singye Wangchuck, was crowned King, thus marking a new era in the history of this Himalayan kingdom.

Approximately two-thirds to three-quarters of the population practice Drukpa Kagyupa or Ningmapa Buddhism, both of which are disciplines of Mahayana Buddhism. Approximately one-quarter of the population is ethnic Nepalese and practice Hinduism. Christians, both Roman Catholic and Protestant, and non-religious groups comprise less than 1 percent of the population.

Ethnic Ngalops, descendants of Tibetan immigrants, comprise the majority of the population in the western and central areas and mostly follow the Drukpa Kargyupa school.

Ethnic Sarchops, descendants of the country’s probable original inhabitants, live in the east. Reportedly, some Sarchops practice Buddhism combined with elements of the Bön tradition whereas others follow Animism and Hinduism. Several Sarchops held high positions in the government, the National Assembly, and the court system.

The origin of the word "pizza" is unclear, but by 997 it had appeared in Medieval Latin, and in 16th century Naples a galette flatbread was referred to as a pizza. The pizza was a baker’s tool: a dough used to verify the temperature of the oven. A dish of the poor people, it was sold in the street and was not considered a kitchen recipe for a long time. Before the 17th century, the pizza was covered with white sauce. This was later replaced by oil, cheese, tomatoes or fish. In 1843, Alexandre Dumas, père described the diversity of pizza toppings. In June 1889, to honor the Queen consort of Italy, Margherita of Savoy, the Neapolitan chef Raffaele Esposito created the "Pizza Margherita," a pizza garnished with tomatoes, mozzarella cheese, and basil, to represent the colors of the Italian flag. He was the first to add cheese. The sequence through which flavored flatbreads of the ancient and medieval Mediterranean became the dish popularized in the 20th century is not fully understood.

Bön, the country’s animist and shamanistic belief system, revolves around the worship of nature and predates Buddhism. Although Bön priests often officiated and included Bön rituals in Buddhist festivals, very few citizens adhere exclusively to this religious group.

The Black Mountains in the central region of Bhutan form a watershed between two major river systems: the Mo Chhu and the Drangme Chhu. Peaks in the Black Mountains range between 1,500 and 2,700 metres (4,900 and 8,900 ft) above sea level, and fast-flowing rivers have carved out deep gorges in the lower mountain areas. The forests of the central Bhutan mountains consist of Eastern Himalayan subalpine conifer forests in higher elevations and Eastern Himalayan broadleaf forests in lower elevations. Woodlands of the central region provide most of Bhutan’s forest production. The Torsa, Raidak, Sankosh, and Manas are the main rivers of Bhutan, flowing through this region. Most of the population lives in the central highlands.

In the south, the Shiwalik Hills are covered with dense Himalayan subtropical broadleaf forests, alluvial lowland river valleys, and mountains up to around 1,500 metres (4,900 ft) above sea level. The foothills descend into the subtropical Duars Plain. Most of the Duars is located in India, although a 10 to 15 kilometres (6.2 to 9.3 mi) wide strip extends into Bhutan. The Bhutan Duars is divided into two parts: the northern and the southern Duars. The northern Duars, which abuts the Himalayan foothills, has rugged, sloping terrain and dry, porous soil with dense vegetation and abundant wildlife. The southern Duars has moderately fertile soil, heavy savannah grass, dense, mixed jungle, and freshwater springs. Mountain rivers, fed by either the melting snow or the monsoon rains, empty into the Brahmaputra River in India. Data released by the Ministry of Agriculture showed that the country had a forest cover of 64% as of October 2005.

The climate in Bhutan varies with altitude, from subtropical in the south to temperate in the highlands and polar-type climate, with year-round snow, in the north. Bhutan experiences five distinct seasons: summer, monsoon, autumn, winter and spring. Western Bhutan has the heavier monsoon rains; southern Bhutan has hot humid summers and cool winters; central and eastern Bhutan is temperate and drier than the west with warm summers and cool winters.

The following is a dzongkhagwise list of 205 Gewogs (Blocks) of Bhutan:

1. Chhoekhor
2. Chhume
3. Tang
4. Ura
5. Bjachho
6. Bongo
7. Chapcha
8. Darl
9. Dungna
10. Geling
11. Getana
12. Lokchina
13. Metakha
14. Phuentsholing
15. Sampheling
16. Dagana  Deorali
17. Dorona
18. Drujegang
19. Gesarling
20. Goshi
21. Kana
22. Khebisa
23. Lajab
24. Lhamoi Zingkha
25. Nichula
26. Trashidin
27. Tsangkha
28. Tsendagang
29. Tseza
30. Goenkhamey
31. Goenkhatoe
32. Laya
33. Lunana
34. Bji
35. Gakiling
36. Katsho
37. Sama
38. Sombaykha
39. Uesu
40. Gangzur
41. Khoma
42. Jarey
43. Kurtoe
44. Menbi
45. Metsho
46. Minjay
47. Tsenkhar
48. Balam
49. Chali
50. Chaskhar
51. Dramitse
52. Drepong
53. Gongdue
54. Jurmey
55. Kengkhar
56. Mongar
57. Narang
58. Ngatshang
59. Saling
60. Sherimung
61. Silambi
62. Thangrong
63. Tsakaling
64. Tsamang
65. Dogar
66. Dopshari
67. Doteng
68. Hungrel
69. Lamgong
70. Lungnyi
71. Naja
72. Shap
73. Tsento
74. Wangchang
75. Chimung
76. Chokhorling
77. Chongshing
78. Dechheling
79. Dungmin
80. Khar
81. Nanong
82. Norbugang
83. Shumar
84. Yurung
85. Zobel
86. Barp
87. Chhubu
88. Dzomi
89. Goenshari
90. Guma
91. Kabjisa
92. Lingmukha
93. Shenga Bjemi
94. Talo
95. Toebisa
96. Toewang
97. Dewathang
98. Gomdar
99. Langchenphu
100. Lauri
101. Marthala
102. Orong
103. Pemathang
104. Phuntshothang
105. Samrang
106. Serthi
107. Wangphu
108. Bara
109. Biru
110. Chargharey
111. Chengmari
112. Denchukha
113. Dorokha
114. Dungtoe
115. Lahireni
116. Pagli
117. Samtse
118. Sipsu
119. Tading
120. Tendu
121. Ugentse
122. Yoeseltse
123. Bhur
124. Chuzargang
125. Dekiling
126. Dovan
127. Gelephu
128. Hilley
129. Jigmechholing
130. Sengye
131. Shershong
132. Shompangkha
133. Taklai
134. Umling
135. Chang
136. Dagala
137. Genye
138. Kawang
139. Lingzhi
140. Mewang
141. Naro
142. Soe
143. Bartsham
144. Bidung
145. Kanglung
146. Kangpara
147. Khaling
148. Lumang
149. Merak
150. Phongme
151. Radhi
152. Sakteng
153. Samkhar
154. Shongphu
155. Thrimshing
156. Uzorong
157. Yangnyer
158. Bumdeling
159. Jamkhar
160. Khamdang
161. Ramjar
162. Toetsho
163. Tomzhang
164. Yalang
165. Yangtse
166. Dragteng
167. Korphu
168. Langthel
169. Nubi
170. Tangsibji
171. Barshong
172. Beteni
173. Dunglegang
174. Gosaling
175. Kikhorthang
176. Mendrelgang
177. Pataley
178. Phuntenchu
179. Rangthangling
180. Semjong
181. Tsholingkhar
182. Tsirangtoe
183. Athang
184. Bjena
185. Daga
186. Dangchu
187. Gangtey
188. Gasetsho Gom
189. Gasetsho Wom
190. Kazhi
191. Nahi
192. Nyisho
193. Phangyul
194. Phobji
195. Ruepisa
196. Sephu
197. Thedtsho
198. Bardo
199. Bjoka
200. Goshing
201. Nangkor
202. Ngangla
203. Phangkhar
204. Shingkhar
205. Trong

Their grouping into four zones (dzongdey), Eastern, Southern, Central and Western.

1. Bumthang
2. Chukha (old spelling: Chhukha)
3. Dagana
4. Gasa
5. Haa
6. Lhuntse
7. Mongar
8. Paro
9. Pemagatshel (Pemagatsel)
10. Punakha
11. Samdrup Jongkhar
12. Samtse (Samchi)
13. Sarpang (old spelling: Sarbhang)
14. Thimphu
15. Trashigang (Tashigang)
16. Trashiyangtse
17. Trongsa (Tongsa)
18. Tsirang (Chirang)
19. Wangdue Phodrang (Wangdi Phodrang)
20. Zhemgang (Shemgang)

Bhutan’s economy is based on agriculture, forestry, tourism and the sale of hydroelectric power to India. Agriculture provides the main livelihood for more than 80 percent of the population. Agrarian practices consist largely of subsistence farming and animal husbandry. Handicrafts, particularly weaving and the manufacture of religious art for home altars, are a small cottage industry. A landscape that varies from hilly to ruggedly mountainous has made the building of roads and other infrastructure difficult and expensive. This, and a lack of access to the sea, has meant that Bhutan has not been able to benefit from significant trading of its produce. Bhutan does not have any railways, though Indian Railways plans to link southern Bhutan to its vast network under an agreement signed in January 2005. Bhutan and India signed a ‘free trade’ accord in 2008, which additionally allowed Bhutanese imports and exports from third markets to transit India without tariffs. The historic trade routes over the high Himalayas, which connected India to Tibet, have been closed since the 1950 military takeover of Tibet (although smuggling activity still brings Chinese goods into Bhutan).

The industrial sector is in a nascent stage, and though most production comes from cottage industry, larger industries are being encouraged and some industries such as cement, steel, and ferro alloy have been set up. Most development projects, such as road construction, rely on Indian contract labour. Agricultural produce includes rice, chilies, dairy (some yak, mostly cow) products, buckwheat, barley, root crops, apples, and citrus and maize at lower elevations. Industries include cement, wood products, processed fruits, alcoholic beverages and calcium carbide.

Incomes of over Nu 100,000 per annum are taxed, but very few wage and salary earners qualify. Bhutan’s inflation rate was estimated at about three percent in 2003. Bhutan has a Gross Domestic Product of around USD 2.913 billion (adjusted to Purchasing Power Parity), making it the 162nd largest economy in the world.

Per capita income is around $1,400, ranked 124th. Government revenues total $272 million, though expenditures amount to $350 million. 60 percent of the budget expenditure, however, is financed by India’s Ministry of External Affairs. Bhutan’s exports, principally electricity, cardamom, gypsum, timber, handicrafts, cement, fruit, precious stones and spices, total €128 million (2000 est.). Imports, however, amount to €164 million, leading to a trade deficit. Main items imported include fuel and lubricants, grain, machinery, vehicles, fabrics and rice. Bhutan’s main export partner is India, accounting for 58.6 percent of its export goods. Hong Kong (30.1 percent) and the Bangladesh (7.3 percent) are the other two top export partners. As its border with Tibet is closed, trade between Bhutan and China is now almost non-existent. Bhutan’s import partners include India (74.5 percent), Japan (7.4 percent) and Sweden (3.2 percent).

In a response to accusations in 1987 by a journalist from UK’s Financial Times that the pace of development in Bhutan was slow, the King said that "Gross National Happiness is more important than Gross National Product." This statement appears to have presaged recent findings by western economic psychologists, including 2002 Nobel Laureate Daniel Kahneman, that question the link between levels of income and happiness. The statement signaled his commitment to building an economy that is appropriate for Bhutan’s culture and people, based on Buddhist spiritual values, and has served as a unifying vision for the economy. In a survey in 2005, 45 percent of Bhutanese reported being very happy, 52 percent reported being happy and only three percent reported not being happy. Based on this data, the Happy Planet Index estimates that the average level of life satisfaction in Bhutan is within the top 10 percent of nations worldwide, and certainly higher than other nations with similar levels of GDP per capita.

While Bhutanese citizens are free to travel abroad, Bhutan is viewed as inaccessible by many foreigners. There is a widespread misconception that Bhutan has set limits on tourist visas. Another reason for it being an unpopular destination is the cost, which is high for tourists on tighter budgets. Entry is free for citizens of India and Bangladesh, but all other foreigners are required to sign up with a Bhutanese tour operator and pay around $200 per day that they stay in the country.

The National Dress for Bhutanese men is the gho, a knee-length robe tied at the waist by a cloth belt known as the kera. Women wear an ankle-length dress, the kira, which is clipped at one shoulder and tied at the waist. An accompaniment to the kira is a long-sleeved blouse, the toego, which is worn underneath the outer layer. Social status and class determine the texture, colours, and decorations that embellish the garments. Differently coloured scarves and shawls are important indicators of social standing, as Bhutan has traditionally been a feudal society. Jewellery is mostly worn by women, especially during religious festivals and public gatherings. To strengthen Bhutan’s identity as an independent country, Bhutanese law requires all Bhutanese citizens to wear the national dress in public areas and as formal wear.

Rice, buckwheat, and increasingly maize, are the staple foods of the country. The local diet also includes pork, beef, yak meat, chicken, and mutton. Soups and stews of meat and dried vegetables spiced with chillies and cheese are prepared. Ema datshi, made very spicy with cheese and chilies, might be called the national dish for its ubiquity and the pride that Bhutanese have for it. Dairy foods, particularly butter and cheese from yaks and cows, are also popular, and indeed almost all milk is turned to butter and cheese. Popular beverages include butter tea, tea, locally brewed rice wine and beer. Bhutan is the only country in the world to have banned the sale of tobacco.

Bhutan’s national sport is archery, and competitions are held regularly in most villages. It differs from Olympic standards in technical details such as the placement of the targets and atmosphere. There are two targets placed over 100 meters apart and teams shoot from one end of the field to the other. Each member of the team shoots two arrows per round. Traditional Bhutanese archery is a social event and competitions are organized between villages, towns, and amateur teams. There are usually plenty of food and drink complete with singing and dancing. Attempts to distract an opponent include standing around the target and making fun of the shooter’s ability. Darts (khuru) is an equally popular outdoor team sport, in which heavy wooden darts pointed with a 10 cm nail are thrown at a paperback-sized target ten to 20 meters away.

Another traditional sport is the digor, which resembles the shot put and horseshoe throwing. Cricket has gained popularity in Bhutan, particularly since the introduction of television channels from India. The Bhutanese national cricket team is one of the more successful associate nations in the region. Football is also an increasingly popular sport. In 2002, Bhutan’s national football team played Montserrat, in what was billed as The Other Final; the match took place on the same day Brazil played Germany in the World Cup final, but at the time Bhutan and Montserrat were the world’s two lowest ranked teams. The match was held in Thimphu’s Changlimithang National Stadium, and Bhutan won 4–0. A documentary of the match was made by the Dutch filmmaker Johan Kramer.

Rigsar is an emerging style of popular music in Bhutan, played on a mix of traditional instruments and electronic keyboards, and dates back to the early 1990s; it shows the influence of Indian popular music, a hybrid form of traditional and Western popular influences. Traditional genres include the zhungdra and boedra.

Characteristic of the region is a type of castle fortress known as the dzong. Since ancient times, the dzongs have served as the religious and secular administration centres for their respective districts.

Bhutan has numerous public holidays, most of which centre around traditional seasonal, secular and religious festivals. They include the winter solstice (around January 1, depending on the lunar calendar), the lunar New Year (February or March), the King’s birthday and the anniversary of his coronation, the official start of monsoon season (September 22), National Day (December 17), and various Buddhist and Hindu celebrations.

Masked dances and dance dramas are common traditional features at festivals, usually accompanied by traditional music. Energetic dancers, wearing colourful wooden or composition face masks and stylized costumes, depict heroes, demons, dæmons, death heads, animals, gods, and caricatures of common people. The dancers enjoy royal patronage, and preserve ancient folk and religious customs and perpetuate the ancient lore and art of mask-making.

Inheritance in Bhutan generally goes in the female rather than the male line. Daughters will inherit their parents’ house. A man is expected to make his own way in the world and often moves to his wife’s home. Love marriages are common in urban areas, but the tradition of arranged marriages is still common in the villages. Although uncommon, polygamy is accepted, often being a device to keep property in a contained family unit rather than dispersing it. The previous King Jigme Singye Wangchuck, who abdicated in 2006, has 4 Queens, all of whom are sisters.

The University of Texas at El Paso in the United States has adopted Bhutanese architecture for its buildings on campus, as have the nearby Hilton Garden Inn and other buildings in the city of El Paso.